For old-time subscribers still holding QQQ from October 2000 -- Brinker's all-time-worst Nasdaq blunder -- Brinker finally ended that disastrous trade too. (Note that the last time that Marketimer mentioned this trade was in March 2003.) But sadly, after holding for 12 years, he had subscribers sell too early to even recoup all of their losses.
October 2012 Marketimer, Page 3 Paragraphs 6, Bob Brinker wrote: In addition to our recommendation to eliminate Rydex Nasdaq 100 Fund from our model portfolios, we also recommend the sale of any QQQ shares that are held by subscribers, with reinvestment of the proceeds in either the Vanguard Total Stock Market Index (VTSMX), or the corresponding exchange traded fund (VTI).On Moneytalk the following month, Brinker talked extensively about making these changes. Here are excerpts from my November 18, 2012 Moneytalk summary:
ALL NASDAQ SOLD FROM MARKETIMER: Caller John from San Diego said: "I've been a subscriber of yours for almost as long as you've been on the air.....Recently, I noticed that you made some changes in your I and II portfolios.... (Brinker interrupted and asked what's your question).....It has to do with exposure the Nasdaq and I understand you...."
Brinker interrupted and replied: "We don't have it anymore, John. In early October, we sold all of our Nasdaq direct exposure. So that meant that we sold our mutual fund that was invested in the Nasdaq 100....That came out of model I and model II and we also extended that to QQQ shares, which are also invested in the Nasdaq 100. We also sold any QQQ shares that subscribers held. All of those share in the Nasdaq 100, whether they be in the mutual fund or in the Exchange Traded Fund were sold in early October. So they're out of there. There's no more direct Nasdaq exposure anywhere in model I or in model II or anywhere within newsletter subscriber positions. We sold them out in early October. I felt at that time, based on all that I had seen in the Nasdaq that that was an opportunity to sell that index and that's what we did."Since Brinker made those changes, the Nasdaq Index has outperformed the Total Stock Market Fund by about 15%. I don't pretend to be a mathematician, so that is my guestimate based on comparing charts. If anyone wants to do the exact math, that would be great!
RYOCX sold at $17.87....now at $26.10
QQQ sold at $64.79.....now $108.69.
VTSMX sold at $34.21........now $53.25
